Healthcare Analytics Market

Global Healthcare Analytics Market Size (2022 to 2027)

The global healthcare analytics market size is expected to reach USD 34.74 billion by 2027 from USD 11.2 billion in 2022, growing at a CAGR of 25.41% during the forecast period.

According to Intel, more than 80.0% of US medical institutions employ electronic medical record (EMR) systems. These systems collect large amounts of data that can be analyzed using various healthcare analysis methods to develop personalized medicine. For example, providers can use Healthcare Analytics to identify cost-related clinically relevant results through survey mining of electronic patient records, identify medical inaccuracies inherent in the system, and provide patients with a High cost-effective treatment while reducing resource waste.

MARKET DRIVERS:

Factors such as the rapid adoption of the latest technologies and the implementation of new healthcare devices are driving the demand for the global healthcare analytics market.

Increasing venture capital investments and growing healthcare spending, growing R&D activities, improving patient comes, and the introduction of big data in healthcare influence the growth of the global healthcare analytics market. Furthermore, the investment expenditure on healthcare, particularly in urban areas with increasing disposable income, boosts the market growth. In addition, adopting analytics for sales and marketing applications, increasing the widespread chronic diseases, and growing pressure to minimize healthcare expenditure are expected to promote the growth rate of the healthcare analytics market during the forecast period. However, the adoption of big data applications in healthcare and ensuring maintaining standardization in numerous internal processes while accommodating regulatory needs further accelerates the growth of the healthcare analytics market.

Increasing demand to reduce healthcare costs, including medical product defects and damages associated with inefficient hospital workflows, is expected to grow big data in the healthcare sector. As a result, the digitization of healthcare data is also one of the notable drivers of the global healthcare analytics market.

The rise of big data in the healthcare industry is increasingly focused on collecting and analyzing data from various sources, with better customer service and technological advances. The emergence of social media and its impact on the healthcare industry offers massive demand for the healthcare analytics market. Also, increasing funding for medical technology companies, developing mHealth applications, big data analytics, and the Internet of Things (IoT) products are anticipated to boost the global healthcare analytics market. Advances in technology designed to promote information sharing and improve compliance with the Health Insurance Portability and Accountability Act (HIPAA) patient data privacy standard may accelerate market growth.

MARKET RESTRAINTS:

Factors such as high implementation expenditure associated with healthcare analytics and security-related problems impede the market growth. The healthcare sector collects data from various sources in real-time, which involves the storage problem. According to the survey report, around 25 million patient records were breached in 2019, a challenging factor in market growth. However, the lack of skilled and trained people and less knowledge over the use of healthcare analytics tools are restraining the market growth of the healthcare analytics market.

MARKET OPPORTUNITIES:

The tremendous growth of patient data in the global healthcare system provides a strong foundation for healthcare analytics needs. The need to improve healthcare decisions with insights backed by global data drives healthcare analytics adoption. However, the global healthcare analytics market is deteriorating with the increasing use of analytical tools to reduce the performance gap in healthcare delivery systems. The tremendous potential of the healthcare analytics process and strategy can help stakeholders better assess public health priorities and make credible, data-driven healthcare decisions to fuel market growth. In addition, insights from healthcare analytics can help improve relationships between caregivers and healthcare providers, including insurance providers. Therefore, adopting healthcare analytics tools and strategies is a valuable claim.

Promising potential health care analytics for national preventive health strategies and plans drives their adoption in developed countries. The digitization of healthcare systems, especially in growing regions, is fuelling the market demand for healthcare analytics. The growing popularity of big data analytics in healthcare transformation in developing and developed countries have contributed significantly to the growth of the healthcare analytics market.

MARKET CHALLENGES:

Data storage and raw data analysis require the right technicians, which are the main challenges in Healthcare Analytics Market.

Impact of COVID-19 on the global healthcare analytics market:

COVID-19 was declared a pandemic by the world healthcare organization in March 2020. It has affected all the sectors across the globe. The healthcare industry is benefited from the pandemic. The healthcare analytics market has faced a downfall in the earlier stage of the COVID-19 because of the lockdown and travel ban.  The healthcare industry shares mass health-related information using various platforms. It is essential to store patients' information during the pandemic to analyze patient conditions and promote better treatment procedures. Thus, the pandemic has positively impacted the demand for this market. Hence, the market is expected to have better further growth.

REPORT COVERAGE:

This research report on the global healthcare analytics market has been segmented and sub-segmented into the following categories, evaluated the market size, and forecast until 2027.

Healthcare Analytics Market - By Type:

• Predictive Analytics
• Descriptive/Retrospective Analytics
• Prescriptive Analytics

Based on type, the predictive analytics segment led the healthcare analytics market in 2021. Increasing expenditure on healthcare with the rise in disposable income is leveraging the market's growth. In addition, the growing prevalence of effective treatment procedures at any cost is likely to broaden the market's need.

Healthcare Analytics Market - By Application:

• Financial Analytics
• Clinical Analytics
• Operational & Administrative Analytics

Based on the application, the financial analytics application dominated the healthcare analytics market in 2021. Increasing demand for analyzing financial issues in healthcare centers properly increases the need for the global healthcare analytics market. However, the government's rise in hospital investments is outshining the market's growth.

Healthcare Analytics Market - By End User:

• Public Health Systems
• Healthcare Providers
• Private Healthcare Providers
• Monitoring Agencies
• Health Insurance Companies
• Clinical and Medical Research Bodies
• Technology Vendors

Public health systems end-users occupied the leading share of the healthcare analytics market in 2021. The growing prevalence of quality diagnosis and treatment procedures at any cost, especially in urban areas, is fuelling the growth of the healthcare analytics market.

Healthcare Analytics Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa

Regionally, the North American healthcare analytics market accounted for a significant share of the global market in 2021 due to the quick adoption of the latest technologies and various healthcare sector applications. Furthermore, the growing demand for better techniques that are convenient and accurate in completing tasks is boosting the market's need. In this region, the U.S. is leading, followed by Canada.

The Europe healthcare analytics market follows North America in holding a substantial share of the global market. Increasing capital income in both developed and developing countries is accelerating the growth of the healthcare analytics market. In addition, the rise in government initiatives to accept electronic health records in hospitals promotes market growth.

The Asia Pacific healthcare analytics market has had a tremendous growth rate over the past decade with an increasing population. In addition, increasing disposable income in urban areas is expanding the growth rate of the healthcare analytics market in this region. 

The Latin American healthcare analytics market size is projected to be USD 2.03 billion by 2027.

The healthcare analytics market in the MEA region is estimated to be growing at a CAGR of 18.95% from 2022 to 2027.

KEY MARKET PARTICIPANTS:

A list of notable companies playing a promising role in the Global Healthcare Analytics Market is SAS Institute Inc., McKesson, Optum Inc., IBM Corporation, Truven Health Analytics Inc., Cerner Corporation, Verisk Analytics Inc., Allscripts Health Solutions, Oracle Corporation, MedeAnalytics Inovalon Inc., and Health Catalyst.

MAJOR HAPPENINGS IN THIS MARKET IN THE RECENT PAST:

• On the other hand, emerging markets are expected to grow due to a surge in government spending on healthcare infrastructure. As a result of the transition from paper charts to real-time monitoring systems, integrating big data and electronic health records to collect patient health data will merge the industry.
• IBM acquired Truven Health Analytics for approximately $ 2.6 billion to enhance IBM Watson Health's business portfolio and expand its customer base.
• Medtronic plc and its strategic technology partner, IBM Watson Health, 2018, announced the commercial application of Sugar.IQ Intelligent Diabetes Assistant
• In April, Inovalon launched two new products on the Inovalon ONE (TM) platform. Clinical data extraction as a service (CDEaaS) and natural language processing as a service (NLPaaS).
• In 2017, VitreosHealth unveiled a powerful digital membership engagement solution powered by AI. This digital engagement service extends the reach of care management to reach more patients at the right time.
• McKesson Specialty Health and CoverMyMeds (a division of McKesson Corporation) launched ExpressCoverage in 2018. It is an integrated eServices platform designed to improve patient care processes.